If Net Exports Is a Negative Number, the Government Sector

question 339

Multiple Choice

If net exports is a negative number, the government sector must________ if the private sector is in a ________ .

• A) run a deficit; surplus
• B) The statement errs because the accounts are not related.
• C) run a surplus; surplus
• D) equal zero; deficit

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Definitions:

Limited Partnership

A partnership structure where at least one partner has unlimited liability, and at least one partner has limited liability.

Personal Liability

The responsibility of an individual to bear the financial costs associated with damages or debt from their actions or business dealings.

Sole Proprietorship

A business owned and operated by one person, who is solely responsible for its liabilities and entitled to its profits.

Legal Entity

An organization or system that has its own legal identity, allowing it to own property, enter into contracts, and be sued or sue.